The company is also looking at lower geo-fenced speed limits to slow cars around sensitive pedestrian areas such as schools, while seeking to "start a conversation" among automakers and regulators about how technology can be used to improve safety.

The Polestar 2 will cost about 59,900 euros ($68,100) for its launch edition and can be driven for around 275 miles before it needs recharging - broadly in line with the Model 3's current price in Europe of 58,800 euros and 260 miles range.

Carmakers have faced rising costs and pricing pressure in some markets due to a trade war between Washington and Beijing in 2018 as well as slower demand from Europe and from China, the biggest autos market.

The deal – which will enable Volvo Cars to provide car owners and drivers with its latest developments in connected car digital services such as automation, fleet management, telematics, navigation, and infotainment – is the largest to date for Ericsson Connected Vehicle Cloud.

Lynk & Co, co-owned by Volvo's owner and its two brands Volvo and Geely Auto, began selling its first model in China last year. The vehicle is currently produced at a Volvo-operated plant in Taizho in China.

Dheeraj Hinduja, chairman at India’s second largest truck maker Ashok Leyland, prefers a low profile, but with managing director Vinod Dasari leaving at the end of the month, he says he’s become more “hands-on”.